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Let's say a child uses his own dog's name - Rusty - to refer to his neighbor's dog. This most clearly illustrates:
Net Sales
Sales revenue minus returns, allowances, and discounts.
Cost Of Goods Sold
The direct costs attributable to the production of goods sold by a company, including material and labor costs.
Acid-Test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, which exclude inventory.
Quick Ratio
A liquidity ratio that measures a company's ability to pay its short-term obligations with its most liquid assets.
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